Betting board loses bid to rein in SMS lotteries

By Judy Ogutu

A decision by the Betting Control and Licensing Board (BCLB) to revoke the license of a lottery company has been put on hold.

Justice Daniel Musinga of the High Court yesterday issued the orders in favour of Interactive Gamming and Lotteries Limited.

He said the orders would remain in force until March 15 or until further orders of the court.

BCLB had revoked the license for Interactive Gaming alleging that it had failed to comply with a court order to deposit Sh50 million in order to continue running the public lottery.

Last year, Justice Mohammed Warsame ordered the company to deposit Sh50 million in court if they were to continue running the public lottery.

This was after Interactive Gaming had filed an urgent case saying a director of BCLB wrote to the firm a letter dated December 15 and claimed its current lottery permit, which was valid up to March 15, 2011 was to expire on December 31, last year.

Yesterday, Justice Musinga ruled that once a matter has been referred to court it is improper for any party to act unilaterally.

He said if BCLB believed the lottery company violated the court order, it ought to have moved to the court on the issue.

"The respondent should not have nullified license. It appears to court the respondent was determined to terminate operations by whatever means. The applicant complied with the order and deposited Sh50 million," he ruled.

Protecting public

Further, the judge said it was not for the court to determine how the company will run the lottery.

Interactive Gaming is seeking to prohibit BCLB from cancelling, rescinding or in any other way taking any action, decision or interfering with their permit to run the public lottery up to March 15, 2011.

BCLB, in a sworn statement by its chairman Lucas Mweni Maitha, said the letter written to the lottery company was lawful and in good faith aimed at protecting members of the public from being deceived and confused.

BCLB said the applicant while applying for a permit, had stated the lottery to be promoted was Mzalendo Bora, which was to be promoted through interactive media services platform under the short code number 6868 at a cost of Sh50.

Thereafter, it issued it with a permit to promote the lottery for three months effective from October 1 to December 31 by way of a raffle.

However, the company incorporated Flint Africa on the permit and changed from the approved lottery name of Mzalendo Bora 6868 to the Original Shinda Smart 6969, which BCLB says amounted to transfer of the permit.

BCLB contends that Interactive Gaming changed the lottery from being raffle based on a quiz, which is illegal, unlawful and fraudulent.